SOUTHSIDE BANCSHARES, INC.
(Exact name of registrant as specified in its charter) | |
TEXAS |
75-1848732 |
(State or other jurisdiction of |
(I.R.S. Employer |
incorporation or organization) |
Identification No.) |
1201 S. Beckham, Tyler, Texas |
75701 |
(Address of principal executive offices) |
(Zip Code) |
Large accelerated filer o |
Accelerated filer x |
Non-accelerated filer o |
Smaller reporting company o |
(Do not check if a smaller reporting company) |
TABLE OF CONTENTS | |
June 30, |
December 31, |
|||||||
ASSETS |
2009 |
2008 |
||||||
Cash and due from banks |
$ | 45,205 | $ | 64,067 | ||||
Interest earning deposits |
3,824 | 557 | ||||||
Federal funds sold |
- | 2,150 | ||||||
Total cash and cash equivalents |
49,029 | 66,774 | ||||||
Investment securities: |
||||||||
Available for sale, at estimated fair value |
216,869 | 278,378 | ||||||
Held to maturity, at cost |
1,493 | 478 | ||||||
Mortgage-backed and related securities: |
||||||||
Available for sale, at estimated fair value |
1,052,318 | 1,026,513 | ||||||
Held to maturity, at cost |
240,704 | 157,287 | ||||||
Federal Home Loan Bank stock, at cost |
39,476 | 39,411 | ||||||
Other investments, at cost |
2,064 | 2,065 | ||||||
Loans held for sale |
6,069 | 511 | ||||||
Loans: |
||||||||
Loans |
1,016,967 | 1,022,549 | ||||||
Less: allowance for loan loss |
(18,804 | ) | (16,112 | ) | ||||
Net Loans |
998,163 | 1,006,437 | ||||||
Premises and equipment, net |
46,062 | 42,722 | ||||||
Goodwill |
22,034 | 22,034 | ||||||
Other intangible assets, net |
1,280 | 1,479 | ||||||
Interest receivable |
14,570 | 16,352 | ||||||
Deferred tax asset |
3,208 | 2,852 | ||||||
Other assets |
49,938 | 36,945 | ||||||
TOTAL ASSETS |
$ | 2,743,277 | $ | 2,700,238 | ||||
LIABILITIES AND EQUITY |
||||||||
Deposits: |
||||||||
Noninterest bearing |
$ | 375,312 | $ | 390,823 | ||||
Interest bearing |
1,321,223 | 1,165,308 | ||||||
Total Deposits |
1,696,535 | 1,556,131 | ||||||
Short-term obligations: |
||||||||
Federal funds purchased and repurchase agreements |
20,391 | 10,629 | ||||||
FHLB advances |
80,512 | 229,385 | ||||||
Other obligations |
3,962 | 1,857 | ||||||
Total Short-term obligations |
104,865 | 241,871 | ||||||
Long-term obligations: |
||||||||
FHLB advances |
609,838 | 655,489 | ||||||
Long-term debt |
60,311 | 60,311 | ||||||
Total Long-term obligations |
670,149 | 715,800 | ||||||
Other liabilities |
88,878 | 25,347 | ||||||
TOTAL LIABILITIES |
2,560,427 | 2,539,149 | ||||||
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Note 12) |
||||||||
Shareholders' equity: |
||||||||
Common stock - $1.25 par, 40,000,000 shares authorized, 16,656,514 shares |
20,821 | 19,695 | ||||||
issued in 2009 and 15,756,096 shares issued in 2008 |
||||||||
Paid-in capital |
145,301 | 131,112 | ||||||
Retained earnings |
40,109 | 34,021 | ||||||
Treasury stock (1,762,261 and 1,731,570 shares at cost) |
(23,545 | ) | (23,115 | ) | ||||
Accumulated other comprehensive loss |
(392 | ) | (1,096 | ) | ||||
TOTAL SHAREHOLDERS' EQUITY |
182,294 | 160,617 | ||||||
Noncontrolling interest |
556 | 472 | ||||||
TOTAL EQUITY |
182,850 | 161,089 | ||||||
TOTAL LIABILITIES AND EQUITY |
$ | 2,743,277 | $ | 2,700,238 |
Three Months |
Six Months |
|||||||||||||||
Ended June 30, |
Ended June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Interest income |
||||||||||||||||
Loans |
$ | 17,882 | $ | 17,767 | $ | 36,195 | $ | 36,063 | ||||||||
Investment securities – taxable |
289 | 390 | 608 | 1,070 | ||||||||||||
Investment securities – tax-exempt |
1,379 | 1,160 | 2,873 | 1,978 | ||||||||||||
Mortgage-backed and related securities |
16,075 | 12,020 | 32,479 | 23,993 | ||||||||||||
Federal Home Loan Bank stock and other investments |
48 | 214 | 152 | 476 | ||||||||||||
Other interest earning assets |
54 | 24 | 80 | 91 | ||||||||||||
Total interest income |
35,727 | 31,575 | 72,387 | 63,671 | ||||||||||||
Interest expense |
||||||||||||||||
Deposits |
5,686 | 7,868 | 12,058 | 18,623 | ||||||||||||
Short-term obligations |
1,170 | 1,839 | 2,335 | 5,139 | ||||||||||||
Long-term obligations |
6,416 | 3,973 | 13,302 | 6,644 | ||||||||||||
Total interest expense |
13,272 | 13,680 | 27,695 | 30,406 | ||||||||||||
Net interest income |
22,455 | 17,895 | 44,692 | 33,265 | ||||||||||||
Provision for loan losses |
3,417 | 2,947 | 7,007 | 5,186 | ||||||||||||
Net interest income after provision for loan losses |
19,038 | 14,948 | 37,685 | 28,079 | ||||||||||||
Noninterest income |
||||||||||||||||
Deposit services |
4,417 | 4,667 | 8,452 | 9,084 | ||||||||||||
Gain on sale of securities available for sale |
5,911 | 3,660 | 19,707 | 5,752 | ||||||||||||
Total other-than-temporary impairment losses |
- | - | (5,627 | ) | - | |||||||||||
Portion of gain (loss) recognized in other comprehensive income (before taxes) |
(537 | ) | - | 4,190 | - | |||||||||||
Net impairment losses recognized in earnings |
(537 | ) | - | (1,437 | ) | - | ||||||||||
Gain on sale of loans |
547 | 847 | 882 | 1,312 | ||||||||||||
Trust income |
574 | 619 | 1,137 | 1,212 | ||||||||||||
Bank owned life insurance income |
736 | 758 | 1,037 | 1,068 | ||||||||||||
Other |
745 | 736 | 1,529 | 1,561 | ||||||||||||
Total noninterest income |
12,393 | 11,287 | 31,307 | 19,989 | ||||||||||||
Noninterest expense |
||||||||||||||||
Salaries and employee benefits |
10,460 | 8,806 | 20,944 | 17,519 | ||||||||||||
Occupancy expense |
1,565 | 1,427 | 2,983 | 2,815 | ||||||||||||
Equipment expense |
414 | 329 | 789 | 641 | ||||||||||||
Advertising, travel & entertainment |
494 | 496 | 1,003 | 960 | ||||||||||||
ATM and debit card expense |
361 | 304 | 660 | 592 | ||||||||||||
Director fees |
166 | 147 | 312 | 291 | ||||||||||||
Supplies |
206 | 206 | 418 | 383 | ||||||||||||
Professional fees |
455 | 353 | 1,085 | 787 | ||||||||||||
Postage |
192 | 182 | 380 | 366 | ||||||||||||
Telephone and communications |
363 | 257 | 644 | 515 | ||||||||||||
FDIC Insurance |
1,925 | 232 | 2,461 | 468 | ||||||||||||
Other |
1,687 | 1,594 | 3,126 | 3,299 | ||||||||||||
Total noninterest expense |
18,288 | 14,333 | 34,805 | 28,636 | ||||||||||||
Income before income tax expense |
13,143 | 11,902 | 34,187 | 19,432 | ||||||||||||
Provision for income tax expense |
3,255 | 3,223 | 9,401 | 5,159 | ||||||||||||
Net income |
9,888 | 8,679 | 24,786 | 14,273 | ||||||||||||
Less: Net income attributable to the noncontrolling interest |
(511 | ) | (148 | ) | (1,264 | ) | (196 | ) | ||||||||
Net income attributable to Southside Bancshares, Inc. |
$ | 9,377 | $ | 8,531 | $ | 23,522 | $ | 14,077 | ||||||||
Earnings per common share – basic |
$ | 0.63 | $ | 0.59 | $ | 1.59 | $ | 0.97 | ||||||||
Earnings per common share – diluted |
$ | 0.62 | $ | 0.57 | $ | 1.57 | $ | 0.94 | ||||||||
Dividends paid per common share |
$ | 0.14 | $ | 0.13 | $ | 0.27 | $ | 0.25 |
Common Stock |
Paid-in Capital |
Retained Earnings |
Treasury Stock |
Accumu-lated
Other
Compre-
hensive
Income (Loss) |
Non-
controlling Interest |
Total
Equity |
||||||||||||||||||||||
Balance at December 31, 2007 |
$ | 18,581 | $ | 115,250 | $ | 26,187 | $ | (22,983 | ) | $ | (4,707 | ) | $ | 498 | $ | 132,826 | ||||||||||||
Comprehensive Income |
||||||||||||||||||||||||||||
Net income |
14,077 | 196 | 14,273 | |||||||||||||||||||||||||
Other comprehensive income, net of tax
(see Note 3) |
||||||||||||||||||||||||||||
Net unrealized gains on available-for-sale securities |
826 | 826 | ||||||||||||||||||||||||||
Reclassification adjustment for unrealized gains on sales of available-for-sale securities included in net income |
(3,739 | ) | (3,739 | ) | ||||||||||||||||||||||||
Adjustment to net periodic benefit cost |
285 | 285 | ||||||||||||||||||||||||||
Total comprehensive income |
11,645 | |||||||||||||||||||||||||||
Common stock issued (99,306 shares) |
124 | 796 | 920 | |||||||||||||||||||||||||
Stock compensation expense |
7 | 7 | ||||||||||||||||||||||||||
Tax benefit of incentive stock options |
145 | 145 | ||||||||||||||||||||||||||
Cumulative effect of adoption of a new accounting principle on January 1, 2008 |
(351 | ) | (351 | ) | ||||||||||||||||||||||||
Dividends paid on common stock |
(3,377 | ) | (3,377 | ) | ||||||||||||||||||||||||
Purchase of 6,713 shares of common stock |
(132 | ) | (132 | ) | ||||||||||||||||||||||||
Capital distribution |
(407 | ) | (407 | ) | ||||||||||||||||||||||||
Stock dividend |
824 | 13,422 | (14,246 | ) | - | |||||||||||||||||||||||
Balance at June 30, 2008 |
$ | 19,529 | $ | 129,620 | $ | 22,290 | $ | (23,115 | ) | $ | (7,335 | ) | $ | 287 | $ | 141,276 | ||||||||||||
Balance at December 31, 2008 |
$ | 19,695 | $ | 131,112 | $ | 34,021 | $ | (23,115 | ) | $ | (1,096 | ) | $ | 472 | $ | 161,089 | ||||||||||||
Comprehensive Income |
||||||||||||||||||||||||||||
Net income |
23,522 | 1,264 | 24,786 | |||||||||||||||||||||||||
Other comprehensive income, net of tax
(see Note 3) |
||||||||||||||||||||||||||||
Net unrealized gains on available-for-sale securities |
14,859 | 14,859 | ||||||||||||||||||||||||||
Reclassification adjustment for unrealized gains on sales of available-for-sale securities included in net income |
(12,810 | ) | (12,810 | ) | ||||||||||||||||||||||||
Non-credit portion of other-than-temporary impairment losses on available-for-sale securities |
(2,723 | ) | (2,723 | ) | ||||||||||||||||||||||||
Other-than-temporary impairment charges on available-for-sale securities included in net income |
934 | 934 | ||||||||||||||||||||||||||
Adjustment to net periodic benefit cost |
444 | 444 | ||||||||||||||||||||||||||
Total comprehensive income |
25,490 | |||||||||||||||||||||||||||
Common stock issued (191,440 shares) |
240 | 1,129 | 1,369 | |||||||||||||||||||||||||
Tax benefit of incentive stock options |
419 | 419 | ||||||||||||||||||||||||||
Dividends paid on common stock |
(3,907 | ) | (3,907 | ) | ||||||||||||||||||||||||
Purchase of 30,691 shares of common stock |
(430 | ) | (430 | ) | ||||||||||||||||||||||||
Capital distribution |
(1,180 | ) | (1,180 | ) | ||||||||||||||||||||||||
Stock dividend declared |
886 | 12,641 | (13,527 | ) | - | |||||||||||||||||||||||
Balance at June 30, 2009 |
$ | 20,821 | $ | 145,301 | $ | 40,109 | $ | (23,545 | ) | $ | (392 | ) | $ | 556 | $ | 182,850 |
Six Months Ended
June 30, |
||||||||
2009 |
2008 |
|||||||
OPERATING ACTIVITIES: |
||||||||
Net income |
$ | 24,786 | $ | 14,273 | ||||
Adjustments to reconcile net income to net cash provided by operations: |
||||||||
Depreciation |
1,316 | 1,209 | ||||||
Amortization of premium |
6,299 | 3,667 | ||||||
Accretion of discount and loan fees |
(1,969 | ) | (1,900 | ) | ||||
Provision for loan losses |
7,007 | 5,186 | ||||||
Stock compensation expense |
– | 7 | ||||||
Decrease (increase) in interest receivable |
1,782 | (579 | ) | |||||
Increase in other assets |
(1,097 | ) | (1,457 | ) | ||||
Net change in deferred taxes |
(750 | ) | (382 | ) | ||||
Decrease in interest payable |
(1,170 | ) | (638 | ) | ||||
Increase in other liabilities |
5,575 | 1,886 | ||||||
(Increase) decrease in loans held for sale |
(5,558 | ) | 569 | |||||
Gain on sale of securities available for sale |
(19,707 | ) | (5,752 | ) | ||||
Net other-than-temporary impairment losses |
1,437 | – | ||||||
Loss on sale of assets |
– | 18 | ||||||
Loss on disposal of assets |
37 | – | ||||||
Loss on sale of other real estate owned |
1 | 86 | ||||||
Net cash provided by operating activities |
17,989 | 16,193 | ||||||
INVESTING ACTIVITIES: |
||||||||
Proceeds from sales of investment securities available for sale |
158,151 | 73,858 | ||||||
Proceeds from sales of mortgage-backed securities available for sale |
258,456 | 148,645 | ||||||
Proceeds from maturities of investment securities available for sale |
50,275 | 64,505 | ||||||
Proceeds from maturities of mortgage-backed securities available for sale |
135,738 | 62,586 | ||||||
Proceeds from maturities of mortgage-backed securities held to maturity |
26,082 | 17,776 | ||||||
Proceeds from redemption of FHLB stock |
– | 619 | ||||||
Purchases of investment securities available for sale |
(89,880 | ) | (136,184 | ) | ||||
Purchases of investment securities held to maturity |
(1,014 | ) | – | |||||
Purchases of mortgage-backed securities available for sale |
(401,173 | ) | (326,961 | ) | ||||
Purchases of mortgage-backed securities held to maturity |
(110,035 | ) | (1,664 | ) | ||||
Purchases of FHLB stock and other investments |
(64 | ) | (9,626 | ) | ||||
Net increase in loans |
(2,036 | ) | (22,266 | ) | ||||
Purchases of premises and equipment |
(4,693 | ) | (1,201 | ) | ||||
Proceeds from sales of premises and equipment |
– | 358 | ||||||
Proceeds on bank owned life insurance |
1,086 | – | ||||||
Proceeds from sales of other real estate owned |
217 | 139 | ||||||
Proceeds from sales of repossessed assets |
1,195 | 2,108 | ||||||
Net cash provided by (used in) investing activities |
22,305 | (127,308 | ) |
Six Months Ended |
||||||||
June 30, |
||||||||
2009 |
2008 |
|||||||
FINANCING ACTIVITIES: |
||||||||
Net increase in demand and savings accounts |
1,371 |
88,978 |
||||||
Net increase (decrease) in certificates of deposit |
129,081 |
(122,340 |
) | |||||
Net increase in federal funds purchased and repurchase agreements |
9,762 |
2,222 |
||||||
Proceeds from FHLB Advances |
3,051,206 |
9,423,627 |
||||||
Repayment of FHLB Advances |
(3,245,730 |
) |
(9,288,126 |
) | ||||
Net capital distributions from non-controlling interest in consolidated entities |
(1,180 |
) |
(407 |
) | ||||
Tax benefit of incentive stock options |
419 |
145 |
||||||
Purchase of common stock |
(430 |
) |
(132 |
) | ||||
Proceeds from the issuance of common stock |
1,369 |
920 |
||||||
Dividends paid |
(3,907 |
) |
(3,377 |
) | ||||
Net cash (used in) provided by financing activities |
(58,039 |
) |
101,510 |
|||||
Net decrease in cash and cash equivalents |
(17,745 |
) |
(9,605 |
) | ||||
Cash and cash equivalents at beginning of period |
66,774 |
76,004 |
||||||
Cash and cash equivalents at end of period |
$ |
49,029 |
$ |
66,399 |
||||
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: |
||||||||
Interest paid |
$ |
28,865 |
$ |
31,044 |
||||
Income taxes paid |
7,500 |
5,425 |
||||||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: |
||||||||
Acquisition of other repossessed assets and real estate through foreclosure |
$ |
5,428 |
$ |
3,484 |
||||
5% stock dividend |
13,527 |
14,246 |
||||||
Adjustment to pension liability |
(682 |
) |
(262 |
) | ||||
Unsettled trades to purchase securities |
(61,913 |
) |
(17,874 |
) | ||||
Unsettled trades to sell securities |
– |
725 |
||||||
Unsettled issuances of brokered CDs |
9,900 |
– |
Three Months |
Six Months |
|||||||||||||||
Ended June 30, |
Ended June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Basic and Diluted Earnings: |
||||||||||||||||
Net Income - Southside Bancshares, Inc. |
$ | 9,377 | $ | 8,531 | $ | 23,522 | $ | 14,077 | ||||||||
Basic weighted-average shares outstanding |
14,866 | 14,537 | 14,808 | 14,517 | ||||||||||||
Add: Stock options |
133 | 364 | 174 | 368 | ||||||||||||
Diluted weighted-average shares outstanding |
14,999 | 14,901 | 14,982 | 14,885 | ||||||||||||
Basic Earnings Per Share: |
||||||||||||||||
Net Income - Southside Bancshares, Inc. |
$ | 0.63 | $ | 0.59 | $ | 1.59 | $ | 0.97 | ||||||||
Diluted Earnings Per Share: |
||||||||||||||||
Net Income - Southside Bancshares, Inc. |
$ | 0.62 | $ | 0.57 | $ | 1.57 | $ | 0.94 |
Six Months Ended June 30, 2009 |
||||||||||||
Before-Tax |
Tax (Expense) |
Net-of-Tax |
||||||||||
Amount |
Benefit |
Amount |
||||||||||
Unrealized gains on securities: |
||||||||||||
Unrealized holding gains arising during period |
$ | 22,860 | $ | (8,001 | ) | $ | 14,859 | |||||
Non credit portion of other-than-temporary temporary impairment losses on the AFS securities |
(4,190 | ) | 1,467 | (2,723 | ) | |||||||
Less: reclassification adjustment for gains |
||||||||||||
included in net income |
19,707 | (6,897 | ) | 12,810 | ||||||||
Less: other-than-temporary impairment charges
on AFS securities included in net income |
(1,437 | ) | 503 | (934 | ) | |||||||
Net unrealized gains on securities |
400 | (140 | ) | 260 | ||||||||
Change in pension plans |
682 | (238 | ) | 444 | ||||||||
Other comprehensive income |
$ | 1,082 | $ | (378 | ) | $ | 704 |
Three Months Ended June 30, 2009 |
||||||||||||
Before-Tax |
Tax (Expense) |
Net-of-Tax |
||||||||||
Amount |
Benefit |
Amount |
||||||||||
Unrealized losses on securities: |
||||||||||||
Unrealized holding gains arising during period |
$ | 1,894 | $ | (662 | ) | $ | 1,232 | |||||
Less: reclassification adjustment for gains |
||||||||||||
included in net income |
5,911 | (2,068 | ) | 3,843 | ||||||||
Less: other-than-temporary impairment charges
on AFS securities included in net income |
(537 | ) | 188 | (349 | ) | |||||||
Net unrealized losses on securities |
(3,480 | ) | 1,218 | (2,262 | ) | |||||||
Change in pension plans |
361 | (126 | ) | 235 | ||||||||
Other comprehensive loss |
$ | (3,119 | ) | $ | 1,092 | $ | (2,027 | ) |
Six Months Ended June 30, 2008 |
||||||||||||
Before-Tax |
Tax (Expense) |
Net-of-Tax |
||||||||||
Amount |
Benefit |
Amount |
||||||||||
Unrealized losses on securities: |
||||||||||||
Unrealized holding gains arising during period |
$ | 1,337 | $ | (511 | ) | $ | 826 | |||||
Less: reclassification adjustment for gains |
||||||||||||
included in net income |
5,752 | (2,013 | ) | 3,739 | ||||||||
Net unrealized losses on securities |
(4,415 | ) | 1,502 | (2,913 | ) | |||||||
Change in pension plans |
262 | 23 | 285 | |||||||||
Other comprehensive loss |
$ | (4,153 | ) | $ | 1,525 | $ | (2,628 | ) |
Three Months Ended June 30, 2008 |
||||||||||||
Before-Tax |
Tax (Expense) |
Net-of-Tax |
||||||||||
Amount |
Benefit |
Amount |
||||||||||
Unrealized losses on securities: |
||||||||||||
Unrealized holding losses arising during period |
$ | (9,626 | ) | $ | 3,369 | $ | (6,257 | ) | ||||
Less: reclassification adjustment for gains |
||||||||||||
included in net income |
3,660 | (1,281 | ) | 2,379 | ||||||||
Net unrealized losses on securities |
(13,286 | ) | 4,650 | (8,636 | ) | |||||||
Change in pension plans |
141 | (49 | ) | 92 | ||||||||
Other comprehensive loss |
$ | (13,145 | ) | $ | 4,601 | $ | (8,544 | ) |
June 30, 2009 |
||||||||||||||||||
Gross Unrealized Losses |
||||||||||||||||||
AVAILABLE FOR SALE: |
Amortized Cost |
Gross Unrealized Gains |
OTTI |
Other |
Estimated Market Value |
|||||||||||||
Investment Securities: |
||||||||||||||||||
U.S. Treasury |
$ |
4,936 |
$ |
17 |
$ |
– |
$ |
– |
$ |
4,953 |
||||||||
Government-Sponsored Enterprise Debentures |
14,326 |
– |
– |
206 |
14,120 |
|||||||||||||
State and Political Subdivisions |
197,878 |
1,373 |
– |
2,694 |
196,557 |
|||||||||||||
Other Stocks and Bonds |
5,274 |
296 |
4,190 |
141 |
1,239 |
|||||||||||||
Mortgage-backed Securities: |
||||||||||||||||||
U.S. Government Agencies |
98,824 |
3,448 |
– |
– |
102,272 |
|||||||||||||
Government-Sponsored Enterprises |
925,807 |
24,395 |
– |
156 |
950,046 |
|||||||||||||
Total |
$ |
1,247,045 |
$ |
29,529 |
$ |
4,190 |
$ |
3,197 |
$ |
1,269,187 |
June 30, 2009 |
||||||||||||||||||
Gross Unrealized Losses |
||||||||||||||||||
HELD TO MATURITY: |
Amortized Cost |
Gross Unrealized Gains |
OTTI |
Other |
Estimated Market Value |
|||||||||||||
Investment Securities: |
||||||||||||||||||
State and Political Subdivisions |
$ |
1,014 |
$ |
35 |
$ |
– |
$ |
– |
$ |
1,049 |
||||||||
Other Stocks and Bonds |
479 |
7 |
– |
– |
486 |
|||||||||||||
Mortgage-backed Securities: |
||||||||||||||||||
U.S. Government Agencies |
19,357 |
463 |
– |
– |
19,820 |
|||||||||||||
Government-Sponsored Enterprises |
221,347 |
3,969 |
– |
45 |
225,271 |
|||||||||||||
Total |
$ |
242,197 |
$ |
4,474 |
$ |
– |
$ |
45 |
$ |
246,626 |
December 31, 2008 | |||||||||||
AVAILABLE FOR SALE: |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Market Value | |||||||
Investment Securities: |
|||||||||||
U.S. Treasury |
$ |
5,008 |
$ |
23 |
$ |
– |
$ |
5,031 | |||
Government-Sponsored Enterprise Debentures |
60,325 |
227 |
1 |
60,551 | |||||||
State and Political Subdivisions |
203,052 |
10,154 |
1,612 |
211,594 | |||||||
Other Stocks and Bonds |
6,711 |
– |
5,509 |
1,202 | |||||||
Mortgage-backed Securities: |
|||||||||||
U.S. Government Agencies |
166,123 |
2,405 |
229 |
168,299 | |||||||
Government-Sponsored Enterprises |
841,737 |
17,984 |
1,507 |
858,214 | |||||||
Total |
$ |
1,282,956 |
$ |
30,793 |
$ |
8,858 |
$ |
1,304,891 |
December 31, 2008 |
||||||||||||||||
HELD TO MATURITY: |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Market Value |
||||||||||||
Investment Securities: |
||||||||||||||||
Other Stocks and Bonds |
$ | 478 | $ | 9 | $ | – | $ | 487 | ||||||||
Mortgage-backed Securities: |
||||||||||||||||
U.S. Government Agencies |
22,778 | 300 | – | 23,078 | ||||||||||||
Government-Sponsored Enterprises |
134,509 | 1,890 | 26 | 136,373 | ||||||||||||
Total |
$ | 157,765 | $ | 2,199 | $ | 26 | $ | 159,938 |
Less Than 12 Months |
More Than 12 Months |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
|||||||||||||||||||
As of June 30, 2009: |
||||||||||||||||||||||||
Available for Sale |
||||||||||||||||||||||||
Government-Sponsored Enterprise Debentures |
$ | 14,120 | $ | 206 | $ | – | $ | – | $ | 14,120 | $ | 206 | ||||||||||||
State and Political Subdivisions |
80,256 | 2,221 | 5,876 | 473 | 86,132 | 2,694 | ||||||||||||||||||
Other Stocks and Bonds |
– | – | 1,239 | 4,331 | 1,239 | 4,331 | ||||||||||||||||||
Mortgage-Backed Securities |
75,678 | 128 | 2,848 | 28 | 78,526 | 156 | ||||||||||||||||||
Total |
$ | 170,054 | $ | 2,555 | $ | 9,963 | $ | 4,832 | $ | 180,017 | $ | 7,387 | ||||||||||||
Held to Maturity |
||||||||||||||||||||||||
Mortgage-Backed Securities |
$ | 4,538 | $ | 45 | $ | – | $ | – | $ | 4,538 | $ | 45 | ||||||||||||
Total |
$ | 4,538 | $ | 45 | $ | – | $ | – | $ | 4,538 | $ | 45 |
As of December 31, 2008: |
||||||||||||||||||||||||
Available for Sale |
||||||||||||||||||||||||
Government-Sponsored Enterprise Debentures |
$ | 29,999 | $ | 1 | $ | – | $ | – | $ | 29,999 | $ | 1 | ||||||||||||
State and Political Subdivisions |
45,686 | 1,496 | 1,193 | 116 | 46,879 | 1,612 | ||||||||||||||||||
Other Stocks and Bonds |
253 | 89 | 949 | 5,420 | 1,202 | 5,509 | ||||||||||||||||||
Mortgage-Backed Securities |
116,616 | 1,517 | 17,174 | 219 | 133,790 | 1,736 | ||||||||||||||||||
Total |
$ | 192,554 | $ | 3,103 | $ | 19,316 | $ | 5,755 | $ | 211,870 | $ | 8,858 | ||||||||||||
Held to Maturity |
||||||||||||||||||||||||
Mortgage-Backed Securities |
$ | 1,212 | $ | 1 | $ | 4,540 | $ | 25 | $ | 5,752 | $ | 26 | ||||||||||||
Total |
$ | 1,212 | $ | 1 | $ | 4,540 | $ | 25 | $ | 5,752 | $ | 26 | ||||||||||||
TRUP |
Par |
Credit
Loss |
Amortized Cost |
Fair Value |
Tranche |
Credit Rating | ||||||||||||
1 |
$ |
2,000 |
$ |
316 |
$ |
1,684 |
$ |
206 |
C1 |
Ca | ||||||||
2 |
2,000 |
50 |
1,950 |
274 |
B1 |
Ca | ||||||||||||
3 |
2,000 |
1,071 |
929 |
189 |
B2 |
Ca | ||||||||||||
$ |
6,000 |
$ |
1,437 |
$ |
4,563 |
$ |
669 |
Six Months Ended June 30, 2009 |
||||||||||||
Impairment Related to Credit Loss |
Impairment Related to All Other Factors |
Total Impairment |
||||||||||
Balance, beginning of the period |
$ | – | $ | – | $ | – | ||||||
Charges on securities for which other-than-temporary impairment charges were not previously recognized |
1,437 | 4,190 | 5,627 | |||||||||
Additional charges on securities for which other-than-temporary impairment charges were previously recognized |
– | – | – | |||||||||
Balance, end of the period |
$ | 1,437 | $ | 4,190 | $ | 5,627 |
Three Months Ended June 30, 2009 |
||||||||||||
Impairment Related to Credit Loss |
Impairment Related to All Other Factors |
Total Impairment |
||||||||||
Balance, beginning of the period |
$ | 900 | $ | 4,727 | $ | 5,627 | ||||||
Charges on securities for which other-than-temporary impairment charges were not previously recognized |
– | – | – | |||||||||
Additional charges on securities for which other-than-temporary impairment charges were previously recognized |
537 | (537 | ) | – | ||||||||
Balance, end of the period |
$ | 1,437 | $ | 4,190 | $ | 5,627 |
June 30, 2009 |
||||||||
Amortized Cost |
Fair Value |
|||||||
(in thousands) |
||||||||
Available for sale securities: |
||||||||
Investment Securities |
||||||||
Due in one year or less |
$ | 8,559 | $ | 8,629 | ||||
Due after one year through five years |
9,135 | 9,388 | ||||||
Due after five years through ten years |
22,829 | 23,115 | ||||||
Due after ten years |
181,891 | 175,737 | ||||||
222,414 | 216,869 | |||||||
Mortgage-backed securities |
1,024,631 | 1,052,318 | ||||||
Total |
$ | 1,247,045 | $ | 1,269,187 |
Amortized Cost |
Fair Value |
|||||||
(in thousands) |
||||||||
Held to maturity securities: |
||||||||
Investment Securities |
||||||||
Due in one year or less |
$ | – | $ | – | ||||
Due after one year through five years |
– | – | ||||||
Due after five years through ten years |
479 | 486 | ||||||
Due after ten years |
1,014 | 1,049 | ||||||
1,493 | 1,535 | |||||||
Mortgage-backed securities |
240,704 | 245,091 | ||||||
Total |
$ | 242,197 | $ | 246,626 |
At |
At |
|||||||
June 30, |
December 31, |
|||||||
2009 |
2008 |
|||||||
Real Estate Loans: |
||||||||
Construction |
$ | 100,012 | $ | 120,153 | ||||
1-4 Family Residential |
235,365 | 238,693 | ||||||
Other |
193,167 | 184,629 | ||||||
Commercial Loans |
164,965 | 165,558 | ||||||
Municipal Loans |
139,483 | 134,986 | ||||||
Loans to Individuals |
183,975 | 178,530 | ||||||
Total Loans |
$ | 1,016,967 | $ | 1,022,549 |
Three Months |
Six Months |
|||||||||||||||
Ended June 30, |
Ended June 30, |
|||||||||||||||
2009 |
2008 |
2009 |
2008 |
|||||||||||||
Allowance for Loan Losses: |
||||||||||||||||
Balance at beginning of period |
$ | 17,432 | $ | 10,611 | $ | 16,112 | $ | 9,753 | ||||||||
Provision for loan losses |
3,417 | 2,947 | 7,007 | 5,186 | ||||||||||||
Loans charged off |
(2,465 | ) | (2,542 | ) | (5,169 | ) | (4,400 | ) | ||||||||
Recoveries of loans charged off |
420 | 511 | 854 | 988 | ||||||||||||
Balance at end of period |
$ | 18,804 | $ | 11,527 | $ | 18,804 | $ | 11,527 | ||||||||
Reserve for Unfunded Loan Commitments: |
||||||||||||||||
Balance at beginning of period |
$ | 7 | $ | 70 | $ | 7 | $ | 50 | ||||||||
Provision for gains (losses) on unfunded loan
commitments |
2 | (64 | ) | 2 | (44 | ) | ||||||||||
Balance at end of period |
$ | 9 | $ | 6 | $ | 9 | $ | 6 |
Gross Intangible Assets |
Accumulated Amortization |